Markit's eurozone manufacturing PMI hits 69-month high in January

Manufacturing activity in the eurozone kicked off the new year at a 69-month high, according to data released on Wednesday.

Markit’s final purchasing managers’ index printed at 55.2 in January, up from the flash estimate of 55.1 and December’s reading of 54.9.

Growth was fastest in Austria, the Netherlands and Germany, while the rate of improvement in business conditions hit a 70-month record in Austria, a three-year high in Germany and remained elevated in the Netherlands despite easing to a three-month low.

Strong growth was also signalled in Spain, where the PMI hit a 20-month high. Meanwhile, the recent recent improved performance of France continued to gather pace, with the PMI rising to a 68-month high. In contrast, the downturn in Greece accelerated, with the PMI there down to a 16-month low of 46.6.

Chris Williamson, chief business economist at IHS Markit, said: “Eurozone manufacturing is off to a strong start to the year, enjoying the fastest rate of expansion for almost six years in January. Rates of growth of new orders, exports and employment have all hit multi-year highs, with the depreciation of the euro playing a key role in helping drive new sales in export markets.

"Optimism about the year ahead has risen to the highest since the region’s debt crisis, suggesting companies are maintaining a buoyant mood despite the heightened political uncertainty caused by Brexit and looming general elections in the Netherlands, France and Germany."